This paper gives some detailed evidence on the background of the MSE operators/MSEs andrnpresents a systematic analysis of the marketing and other related problems, their impact onrndevelopment of the MSE sector in Ethiopia and the constraints. It is based on primary datarncollected from 93 MSE operators using a structured questionnaire prepared for the purpose.rnAlthough there have been serious attempts by the govenunent to liberalize and improve thernenvirorU11ent of the MSE sector, which resulted in increase in investment and competition andrnimprovement in the licensing procedures, information from the survey data indicates that there isrndivergence between policies and directives issued and their actual implementation on the groundrnand there are still problems which requires due attention to alleviate the problems with regard tornmarketing, finance and appropriate working areas.rnThe results show that capital shortage, inadequate business premise, inadequate/uncertain marketrnand high taxes are the major constraints for MSEs in Ethiopia. Moreover, the MSE operatorsrnrevealed that the policy predictability is quite low which implies that a lot remains to be done torncreate an enabling policy envirol1I11ent for the MSE sector. Concrete and coordinated regulatoryrnand in stitutional SUpp0l1 (infrastructure fac ilities like business premises, water and power;rnfinancial services; ex tension services; assistance in the transfer of teclmologies; promotion ofrnmarketing faci lities; and provision of training on sustainable basis) has yet to be provided by therngovernment.